Microgen pays £3.5m for Cambridge-based Jobstream
Software business, Microgen plc has acquired St John’s Innovation Centre, Cambridge-based Jobstream Group from LT Group Ltd for £3.5 million.
This is a third acquisition for Microgen, whose chairman and major shareholder is Sagentia executive chair, Martyn Ratcliffe.
It continues a defined strategy of consolidation in the trust & fund administration market; the deal has again been funded through Microgen's existing cash resources. The acquisition is anticipated to be earnings enhancing in FY 2016 following completion of the integration in the current financial year.
Microgen Financial Systems, the key beneficiary of the acquisition, develops, implements and supports business-critical software. It offers a range of financial services technology systems focused on the global wealth management sector and the UK payments market, and also provides application management services.
Jobstream provides wealth management software for the offshore finance industry and will be integrated into Microgen's Financial Systems business. Jobstream, together with the earlier acquisitions of Unity Software Limited and Finalysys Limited, provides the Microgen Financial Systems business with an increased client and recurring revenue base within its core trust & fund administration sector.
The acquired company's revenue in the year ending June 30, 2014 was £1.8 million with adjusted operating profit for the year of £0.2m. It was founded by serial entrepreneur and investor John Brimacombe (pictured) in 1993 based on his practical experience as a trust manager. He is also chairman of Linguamatics, which provides enterprise search tools for the life sciences sector.